Question: I am a 75-year-old woman who is in quite a pickle: My second husband and I were married six years ago. We owned a condominium together, or at least I thought we did. We each paid half of the down payment, and each month, I paid half of the mortgage. I trusted him to look after all of the business, and he told me he had been to a lawyer and that I should not worry about anything.

When he died in 2007, he willed what I thought was his half to me. But I have now learned that that he left me a “life interest” and gave the rest to his daughter, with whom I have never gotten along.

Not long after he died, she had her lawyer write and tell me that I am responsible for the mortgage payment, the taxes, and insurance, not to mention the upkeep and appliances, or she will charge me rent. I would like to know the rights of the person who lives under “life interest". Does my stepdaughter have any responsibility to pay half of major upkeep on the property and the mortgage? Can she charge me rent? If I want to sell the property, can I do it? I don’t think I can live under this pressure

Answer: First of all, while it may be too late for you to recover from taking it on the chin, your dilemma should raise major red flags to all of our readers who, for whatever reason, choose to accept what partners, spouses, and advisors tell them about their financial situations and refuse to become involved. .
Second, based on the facts as you state them, the lawyer who created this Frankenstein plan for your husband did a disservice to both you and your stepdaughter.

Why would anyone put two people who don’t get along in business with each other? For whatever reason, that is exactly what your husband’s lawyer did.

Here is where you appear to stand: A “life interest” and “life estate” are interchangeable terms describing the ownership of real estate during your natural life. This interest automatically ends at your death, meaning that you have nothing to pass on at your death to your heirs.

As the life tenant, you have the right to live in the property for as long as you live. During this time, you are prohibited from committing “waste,” that is, from damaging or devaluing the condominium because, in effect, your ownership interest is not permanent, but only temporary while you are alive. Therefore, you are generally responsible for taxes, insurance, repairs, and upkeep to the property from your pocket.

At your death, what was your life interest will merge with your stepdaughter’s “remainder interest”, thereby vesting full and fee simple title in your stepdaughter.

About the mortgage: It appears from your e-mail that you and your husband both signed the note and mortgage. Therefore, you and your husband have financial obligations to the mortgage company. At his death, it would appear that you and your stepdaughter would each be responsible for half the mortgage payment. In that your husband left you a life interest, your stepdaughter can’t charge you rent. If you decide to move out, you can rent the property and collect the proceeds from which you will still be responsible for half the note payment and all of the upkeep and repairs.

Can you sell your interest and move? While your life interest can be valued, the first question to ask yourself is who you could find to get into business with your stepdaughter? No one, we suspect. You could try to sell your interest to your stepdaughter, but the value would be substantially discounted. And if you did sell to your stepdaughter or anyone else, you would remain responsible for the mortgage until the condo was refinanced.

Taking the NextStep: You have a mess on your hands and need to see a lawyer who might be able to come up with a strategy to reduce your exposure and stress.